Saturday Reporter-Herald April 16, 2011 E1
Real Estate Matters
www.homeandrealtyguide.com • Saturday, April 16, 2011 • Reporter-Herald
Decoding
Getting loan modification can be trying
the
Market
ILYCE GLINK TRIBUNE MEDIA SERVICES
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uestion: I have had two different trial payments with my lender, and I have paid as expected. But when it comes to making it permanent, there is always some silly reason why they can’t. Who can I write to for help? Answer: Very few people are getting permanent loan modifications. In fact, of the millions of people who have fallen behind on their mortgage payments, or are making them under severe financial stress, just 87,000 were given a permanent loan modification in March, according to data recently released by HOPE for Homeowners, a nonprofit association that assists homeowners in applying for loan modifications. Over the past few months, it has become clear that fewer people are applying for loan modifications. Some economists claim that this is because the economy is improving, and people have found jobs that are helping pay the mortgage. As the economy moves further into a weak recovery, that’s probably true. I also believe that word has gotten around about how few homeowners have received permanent loan modifications, and how frustrating the process is, so many have stopped trying to get one. The biggest problem is that lenders were not required to help homeowners during the worst downturn since the great depression. The program was entirely voluntary. Worse, loan servicers and investors’ financial interests were not necessarily aligned. Throw in some really mediocre (if not poor) customer service from the big banks with thousands of lost documents (which I’m sure would fill a landfill if they ever turn up), and you begin to get an idea of why silly (and sometimes strange) reasons derail legitimate loan modification applications. The simple, if unwelcome, truth is that not every homeowner is entitled to a loan modification. Some might argue that no one is entitled to a loan modification and the loan modification is totally at the discretion of the lender. However, if you feel you have been unfairly denied, you can file a complaint with the Office of the Comptroller of the Currency, which regulates the big banks, at HelpWithMyBank.gov. You might also want to check out the nearly 30 posts I have written over the past 18 months about the loan modification process under the heading “Loan Modification Hell” at www.moneywatch.com and glean extra help from the thousands of comments left by others in the same shoes. Question: We have been living in our home since 2004. The property is in my wife’s relative’s name, since we could not qualify because of our low credit score. We have been making the payments this entire time and purchased the property new. Recently, my wife’s relative passed away. Since we are unable to qualify for a new loan because of our low credit scores and a new loan would place payments beyond what we could
Real Estate
RE/MAX Alliance provides outlook for coming year in real estate RH PAID ADVERTORIAL
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pring is a time symbolic for many things. New beginnings, growth and development are all terms associated with this time of the year. Not surprising, many of these same principles apply to the local real estate market. David Powell, managing broker at RE/MAX Alliance in Loveland, said spring is one of the best and most exciting times of the year for real estate. “Once March and April hit, we typically start to see progress and are able to distinguish a pace that will follow for the rest of the year,” Powell said. Additionally, he said, the busiest time of the year for real estate is the summer. Yet, now is the time that sellers need to decide to put their home on the market if they want to hit that high season in the summer months. Powell added that there are many factors that are taken into account when trying to project a timeline for sellers. “One of the tools we assess when advising our clients is looking to the past, seeing what is happening now, and planning for the future,” he said. So what does that mean for potential home sellers? First, find as much data as you can on recent home sales in your area. Most of the information is available through the county’s public records system, yet that is a lot of information to weed through. So instead, try asking a real estate agent to prepare a comparative market analysis (CMA) for your home. They too, will take this important data into account and organize it into a manner in which you can easily understand it. Next, ask a real estate agent about current trends within the local market. Again, real estate agents have the tools to quickly access and organize this information for you. The area’s multiple listing service (MLS) tracks trends and statistics for all of the homes sold in the area — so it’s quite easy for your real estate agent to
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Working with a real estate agent can help answer many of your questions about buying and selling. Yet, it’s also important to pick the right real estate agent. With RE/MAX Alliance, you know you are getting the experience, resources, and an internationally recognized brand working for you.
track the current trends, as well. Finally — looking toward the future. Many real estate agents closely follow the current events and news for their area. This helps them to be able to forecast what they believe the market will look
“One of the tools we assess when advising our clients is looking to the past, seeing what is happening now, and planning for the future.” — David Powell, managing broker at RE/MAX Alliance in Loveland
like six months from now – or beyond. Powell added that Loveland over the past year is doing much better than many other parts of the country. While the national media always seem to be talking about foreclosure rates, he said it is good to know that Loveland and Northern Colorado are far below the national average. In addition, when comparing statistics from the first three months of 2011 with the first parts of 2010 — there has been a slight decrease in the number of homes sold; yet the median single-family home price has risen. Powell at-
tributes this to the fact that during this time last year, the government’s first-time home buyer tax credit was still in effect. Looking out toward the next six months, he said he feels there will be a positive feeling out there. The ACE project, barring any negotiation problems, should be well on its way to making Loveland its new home. “Even though the bulk of the project may not be in place until next year or later, knowing that NASA is coming is a huge thing for our community and their perceptions for the market in the upcoming months,” Powell said.
Inside this week’s Home & Real Estate Realtor of the Week
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